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Job search monitoring and benefit sanctions
generally reduce unemployment duration and boost entry to employment in the
short term

Unemployment benefits reduce incentives to search
for a job. Policymakers have responded to this behavior by setting minimum
job search requirements, by monitoring to check that unemployment benefit
recipients are engaged in the appropriate level of job search activity, and
by imposing sanctions for infractions. Empirical studies consistently show
that job search monitoring and benefit sanctions reduce unemployment
duration and increase job entry in the short term. However, there is some
evidence that longer-term effects of benefit sanctions may be negative.

Boosting the efficiency of household production
could have large economic effects

The time household members in industrialized
countries spend on housework and shopping is substantial, amounting to about
half as much as is spent on paid employment. Women bear the brunt of this
burden, driven in part by the gender wage differential. Efforts to reduce
the gender wage gap and alter gendered norms of behavior should reduce the
gender bias in household production time and reduce inefficiency in home
production. Policymakers should also note the impact of tax policy on
housework time and its market substitutes, and consider ways to reduce the
distortions caused by sales and income taxes.

The efficacy of hiring strategies hinges on a
firm’s simultaneous use of other policies

When an employer fills a vacancy with one of
its own workers (through promotion or horizontal transfer), it forgoes the
opportunity to fill the position with a new hire from outside the firm.
Although firms use both internal and external hiring methods, they
frequently favor insiders. Internal and external hires differ in observable
characteristics (such as skill levels), as do the employers making the
hiring decisions. Understanding those differences helps employers design and
manage hiring policies that are appropriate for their organizations.

The difference in educational attainment between
China's urban- and rural-born populations has widened in recent years, and
the relatively low educational attainment of the rural-born is a significant
obstacle to raising labor productivity. Rural-to-urban migration does not
create incentives to enroll in higher education as the availability of
low-skill employment in urban areas makes remaining in school less
attractive. In addition, the child-fostering and urban schooling
arrangements for children of migrants further inhibit human capital
accumulation.

Concerns exist that overeducation damages
employee welfare; however it is overeducation combined with overskilling
that is the real problem

Evidence shows that many college graduates are
employed in jobs for which a degree is not required (overeducation), and in
which the skills they learned in college are not being fully utilized
(overskilling). Policymakers should be particularly concerned about
widespread overskilling, which is likely to be harmful to both the welfare
of employees and the interests of employers as both overeducation and
overskilling can lead to frustration, lower wages, and higher quitting rates
while also being a waste of government money spent on education.

The Swiss labor market has proven resilient to
several recent shocks, with unemployment remaining stable and real wages
steadily increasing

Switzerland is a small country with rich
cultural and geographic diversity. The Swiss unemployment rate is low, at
around 4%. The rate has remained at that level since the year 2000, despite
a massive increase in the foreign labor force, the Great Recession, and a
currency appreciation shock, demonstrating the Swiss labor market's
impressive resiliency. However, challenges do exist, particularly related to
earnings and employment gaps between foreign and native workers, as well as
a narrowing but persistent gender pay gap. Additionally, regional
differences in unemployment are significant.

Liberalizing access to citizenship improves the
economic and social integration of immigrants

The perceived lack of economic or social
integration by immigrants in their host countries is a key concern in the
public debate. Research shows that the option to naturalize has considerable
economic and social benefits for eligible immigrants, even in countries with
a tradition of restrictive policies. First-generation immigrants who
naturalize have higher earnings and more stable jobs. Gains are particularly
large for immigrants from poorer countries. Moreover, citizenship encourages
additional investment in skills and enables immigrants to postpone marriage
and fertility. A key question is: does naturalization promote successful
integration or do only those immigrants most willing to integrate actually
apply?

The legacy of apartheid and demand for skills
have resulted in high, persistent inequality and high unemployment

The South African economy was on a positive
growth trajectory from 2003 to 2008 but, like other economies around the
world, it was not spared from the effects of the 2008 global financial
crisis. The economy has not recovered and employment in South Africa has not
yet returned to its pre-crisis levels. Overall inequality has not declined,
and median wages seem to have stagnated in the post-apartheid period. Labor
force participation has been stable and although progress has been made,
gender imbalances persist.

A flexible labor market that was put to the test
in the Great Recession

The Icelandic labor market is characterized by
high union density and the Icelanders’ willingness to work, as labor force
participation is high, the work week long, and people retire late. The
resilience and flexibility of the Icelandic labor market was put to the test
in the Great Recession as a large share of employees in the labor market
experienced a fall in work hours and a fall in nominal wages, while
unemployment rose less than expected. In recent years there has been a
strong influx of foreign workers, mostly from Eastern Europe. Studies have
shown that their labor force participation is no lower than that of
Icelanders.

Sociopsychological factors are much more
important than economic issues in shaping attitudes toward immigration

Public attitudes toward immigration play an
important role in influencing immigration policy and immigrants’ integration
experience. This highlights the importance of a systematic examination of
these public attitudes and their underlying drivers. Evidence increasingly
suggests that while a majority of individuals favor restrictive immigration
policies, particularly against ethnically different immigrants, there exists
significant variation in these public views by country, education, age, and
so on. In addition, sociopsychological factors play a significantly more
important role than economic concerns in driving these public attitudes and
differences.